Oracle to buy majority stake in i-flex

BANGALORE: Software maker Oracle Corp will buy 41 percent of Citigroup Venture Capital International's stake in i-flex Solutions Ltd for Rs 800 per share.

In a press statement released at Redwood Shores in California, Oracle said that as required by Indian law it will make an open offer to purchase an additional 20 percent of the shares outstanding from the remaining shareholders at a price of Rs. 882.62 per share, with total cash consideration of approximately $316 million if the entire 20 percent is tendered into the offer. The transaction is expected to close by this year-end.

Announcing the purchase, Oracle CEO Larry Ellison said, “banking is strategic industry for Oracle with nine out of the top 10 banks already running Oracle ERP applications. Oracle's overall application strategy is to go beyond ERP and offer customers richer industry specific functionality. i-flex gets us there in banking.”

The current i-flex management team will continue to run the company and will align product development, sales, marketing and services activities with Oracle. Charles Phillips, president, Oracle, will join the i-flex board. i-flex will continue to trade on BSE and NSE.